Encapsulate, replaces the selected elements (which should all be the children of the same parent model) and the flows between them with a new model containing the same flows. See http://www.tersus.com/#Id=1258 and http://www.tersus.com/#Id=1244 for more details on encapsulate.
Decapsulate, as the name implies, does the oposite of encapsulate, replacing the selected element with it's internal modeling.
Regards,
David
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